Medicare Advantage - CMS to Recalculate Payment Year 2027 Star Ratings Following Recent Court Ruling

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Medicare Advantage - CMS to Recalculate Payment Year 2027 Star Ratings Following Recent Court Ruling

Equity Research

Flash Comment — June 17, 2026

Managed Care

Medicare Advantage - CMS to Recalculate

Payment Year 2027 Star Ratings Following

Recent Court Ruling

Our Call Stephen Baxter, CFA

This evening CMS announced it would voluntarily recalculate MA QBP ratings for the Equity Analyst | Wells Fargo Securities, LLC

Stephen.Baxter@wellsfargo.com | 212-214-8041

2027 plan year following a recent court ruling in favor of Clover. Our initial sense is that

James LemmisHUM will see a small benefit with UNH / CVS / ELV / CNC not impacted.

Associate Equity Analyst | Wells Fargo Securities, LLC

James.Lemmis@wellsfargo.com | 212-214-5336

Initial Thoughts Mitchell Ostrovsky

Stars Recalc. This evening CMS announced it is voluntarily recalculating Medicare Mitchell.Ostrovsky@wellsfargo.com | 212-214-7243

Advantage Quality Bonus Payment (QBP) ratings following a recent court ruling in favor

of Clover. The ratings were recalculated after removing all Part D Measures and certain

Part C measures. Plans are held harmless, so ratings can only improve vs. the original and

can't get worse. Plans with improved ratings will have an opportunity to resubmit 2027

bids but are not required to do so. Full memo included in body.

Our Take. We note that star ratings calculations are somewhat arduous to re-create

on a bottoms-up basis. Our initial sense is that for our coverage, the potential impacts

are small. Approximately ~2% of HUM's MA membership may move back into at least 4

star territory (H4141). Another ~3% of membership (H1951) appears to move from 4.0

to 4.5 stars. We don't believe UNH / CVS / ELV / CNC would have any increase to % of